Brownwood City Council adopted an ordinance authorizing the issuance and sale of “City of Brownwood, Texas Combination Tax and Revenue Certificate of Obligation, Series 2016,” in the amount of $3,000,000 and approved all matters related to this issuance and sale at Tuesday’s meeting of the council.
The Certificates of Obligation (COs) are being issued and sold to fund ongoing street work and other city facility improvements. Discussion begin on February 9, 2016 when the council held a discussion with staff on street work progress and potential new financing. On April 12, 2016, staff presented the council with options on issuing new debt for the work previously discussed along with a list of other potential projects. Council discussed the scope of work and debt that they desired and decided on issuing a new Certificate of Obligation for $3,000,000. Included in this decision was the use of a “wrap-around” option to defer principle payments on the new debt until an older debt had paid off in 2018.
On April 26, the council authorized publication of a notice of intent to issue this CO. The notices were published in the local newspaper on April 29 and May 6, and no comments from the public have been received, according to a council briefing sheet.
The CO is to be sold on private placement and bids were requested from 22 banks; however, only one bank, TexasBank in Brownwood, submitted a bid. This bid included a blended interest rate of 4.08%, which is lower than the estimated 4.65% City of Brownwood Financial Advisor George Williford of First Southwest of Dallas explained during the council meeting. Williford stated that this lower interest rate will lessen the costs of the CO issuance, saving $167,000 in interest cost over fifteen years.Council moved forward with the issuance of the CO through TexasBank with funding to take place on July 12, 2016. The approval came in a 3-1 vote of the council with Councilman Ed McMillian voting against the matter. McMillian stated that the only thing he was opposed to was the amount of the CO, he wanted the council to borrow only $2,000,000.
In other matters on Tuesday’s agenda:
*Dr. Steve Kelly, on behalf of the Central Texas Veterans’ Memorial, presented a numbered, custom Central Texas Veterans’ Memorial Commemorative Bowie knife to the council in appreciation of the City’s support of the memorial project.
*New City of Brownwood Purchasing Supervisor, Mary Brown, was introduced during the meeting. With the retirement of long-time Director of Purchasing, Gaylon Day, the Purchasing Department has been consolidated into the Finance Department which now supervises Accounting, Purchasing and Utility Billing. Brown was promoted to fill this newly created position of Purchasing Supervisor. She has been with the city for 10 years, working in the Purchasing Department for more than 8 years. She recently attended the LBJ School of Public Affairs at the University of Texas to receive training in state purchasing guidelines and requirements. Brown is being cross trained in both the Purchasing policies and procedures and in the Utility Billing Department.
*Council conducted a public hearing and considered on first reading, an ordinance closing an undeveloped alley located between 1108 and 1110 West Baker, being Lot 1, Block 21, and Lot 4, Block 20 of the Brookesmith Brownwood Subdivision, beginning at West Baker and continuing 150’ Northeast to an alley. This matter will be considered again in a future council meeting, most likely in the consent agenda, according to Brownwood Mayor Stephen Haynes.
*Council authorized the Mayor’s signature on an annual certification of the military equipment displayed at the Camp Bowie Memorial Park requested by the United States Army TACOM Life Cycle Management Command.
*Council approved a bid from Roberts & Petty of Brownwood to replace six HVAC units at the Joint Law Enforcement Center at a cost of $65,990. The recommended bid offered by 1Source Technical Services in the amount of $74,842 was declined and the next to lowest cost bid, through Roberts & Petty was approved, based on the efficiency, performance and cost of the purchase and installation of the units as well as the company being a City of Brownwood tax paying company that often performs repairs for the city. Council members and Mayor Haynes expressed the importance of considering and supporting companies in Brownwood city limits when possible.
*Council approved a contract extension between the City of Brownwood and James B. Hays, M.D. to serve as the City’s Public Health Authority.
*Council approved a resolution authorizing the Mayor to sign contracts and amendments with the Texas Department of Aging and Disability Services (DADS) for the Senior Citizen Program.
*Council approved a resolution approving the dissolution plan of the Brownwood Economic Development Corporation.
